Talks between the Greek government and the institutions on the bailout program review are continuing over the weekend, with new measures and demands being made after the return of the institution heads from Brussels.
According to reports, the institutions have demand greater cuts in supplementary pensions and higher income tax on low and high incomes than what the Greek government is prepared to accept.
Regarding pensions, creditors insist on deep cuts to supplementary pensions, even up to 40 percent, according to sources close to the talks. Creditors have found a 700-million-euro fiscal gap that can only close with supplementary pension cuts.
Labour Minister Giorgos Katrougalos confirmed to reporters as he arrived for a meeting with mission chiefs on Saturday that the institutions have toughen their stance and they ask for significant cuts in supplementary pensions.
According to a report in Mega TV, Katrougalos has said that the institutions "demand blood".
According to To Vima, among the additional measures put forward by the institutions is raising the VAT on energy, from 13% to 23%, in order to have 'guaranteed revenue'. This had also been suggested in previous rounds of negotiations.
The review has dragged on for months mainly due to a rift among the lenders over Greece's fiscal shortfall by 2018, initially seen at 3 percent by the EU, 1 percent by Athens and 4.5 percent by the IMF.
Representatives of the lenders started new consultations in Athens this week aimed at signing off on Greece's progress in adopting terms of a multi-billion euro bailout.
If concluded, the review will pave the way for talks on debt relief with the EU and potentially unlock additional funds from the bailout, which is worth up to 86 billion euros ($98 billion) in total spread out over three years.
Athens needs the money to repay 3.5 billion euros to the IMF and the European Central Bank in July, as well as for unpaid domestic bills.
Sources: thetoc.gr, to Vima, Reuters
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